If the Laffite family deposits $8500 in a savings account at 6.75% interest, compounded continuously, how much will be in the account after 25 years?

Question

Mathematics

Snow White

7 January, 22:28

If the Laffite family deposits $8500 in a savings account at 6.75% interest, compounded continuously, how much will be in the account after 25 years?

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Answers (2)

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Holloway · Answer 1

With compounded continuously the formula is

A=pe^rt

A future value?

P present value 8500

R interest rate 0.0675

T time 25 years

E constant

A=8,500*e^ (0.0675*25)

A=45,950.57

Lola Duncan · Answer 2

P = A (1+i) ⁿ, where A is the initial capital, I = interest rate in% & P the amount after a period of " n " years:

P = 8500 (1+6.75%) ²⁵

P = 8500 (1.067) ²⁵

P = $43,512.7